The Effects Of Fiscal Policy On MacroeconomicVariables Of Iran

Fiscal policy influences the real economy through changes of its variables. Fiscalpolicy shocks are important for policy makers, because of their crucial effects onmacroeconomic variables. So, in this study the response of macroeconomic variables to fiscalpolicy shocks in the Iran‟s economy is investigated. The Vector Autoregressive model (VAR) isapplied for this investigation utilizing the quarterly time series data during 1990-2008. Theresults of this study revealed that: 1- The response of money supply to government revenues andcurrent expenditures is positive and this response to constructive expenditures in is negative, 2-The response of the monetary base to tax revenues and current expenditures is positive and tooil revenue and constructive expenditures is positive at first and then is negative, 3- Theresponse of the exchange rate to tax revenue and constructive expenditures shocks is negativeand is on balanced in the long run. But, the response of exchange rate to oil revenue and currentexpenditures is on balanced in the short run. 4- The response of gross domestic product to taxrevenues and constructive expenditures is negative and is on a certain distance of balanceposition. This response to oil revenue and current expenditures is positive in short run andnegative in long run. 5- The response of private consumption to tax revenues was positive and ison balanced in the long run. While, the response of private consumption is negative to the oilrevenue and constructive expenditures and is placed in a certain distance of balance in long run.Also, the results of variance decomposition illustrated that fiscal policy hasn‟t considerableeffect in the short run variations of these variables

کلیدواژه ها:

fiscal policy shocks ، VAR model ، government revenue ، government expenditures